Chapter 5: Expansion,

Industrialization and Reform

Standard USHC-4: The student will demonstrate an understanding of the industrial

development and the consequences of that development on society and politics during the

second half of the nineteenth and the early twentieth centuries.

Enduring Understanding

Political democracy depends upon the active participation of individuals working through

political and economic-interest groups to protect their welfare. To understand how groups

in the past have protected their rights, the student will utilize the knowledge and skills set

forth in the following indicators:

USHC 4.1 Summarize the impact that government policy and the construction of the

transcontinental railroads had on the development of the national market and on the culture

of Native American peoples.

USHC-4.2 Analyze the factors that influenced the economic growth of the United States and its

emergence as an industrial power, including the abundance of natural resources; government support

and protection in the form of railroad subsidies, tariffs, and labor policies; and the expansion of

international markets.

USHC-4.3 Evaluate the role of capitalism and its impact on democracy, including the ascent of new

industries, the increasing availability of consumer goods and the rising standard of living, the role of

entrepreneurs, the rise of business through monopoly and the influence of business ideologies.

USHC-4.4 Explain the impact of industrial growth and business cycles on farmers, workers,

immigrants, labor unions, and the Populist movement and the ways that these groups and the

government responded to the economic problems caused by industry and business.

USHC-4.5 Explain the causes and effects of urbanization in late nineteenth-century America,

including the movement from farm to city, the changing immigration patterns, the rise of ethnic

neighborhoods, the role of political machines, and the migration of African Americans to the North,

Midwest, and West.

USHC-4.6 Compare the accomplishments and limitations of the women’s suffrage movement and the

Progressive Movement in affecting social and political reforms in America, including the roles of the

media and of reformers such as Carrie Chapman Catt, Alice Paul, Jane Addams, and presidents

Theodore Roosevelt and Woodrow Wilson.

Chapter 5 Terms Transcontinental Railroad

Reservation

Wounded Knee

Dawes Act

George Westinghouse

Mass production

Henry Ford

Natural Resources

Robber Barons

Cornelius Vanderbilt

John D. Rockefeller

Standard Oil

Trust

Monopolies

Andrew Carnegie

J.P. Morgan

Interlocking directorates

Protective Tariffs

Social Darwinism

Gilded Age

Capitalism

International Markets

Democracy

Overproduction

Greenbacks

The Grange

Populist movement

Bimetallism

Immigration

Ellis island

Cultural Pluralism

Ethnic Ghettos

Nativism

Child Labor

Sweatshops

Urban Slums

Tenements

Electric Trolleys

Political Machine

Labor Unions

Knights of Labor

AFL

Samuel Gompers

Strikes

Boycotts

Closed Shop

Eugene Debs

Injunctions

Great strike

Haymarket Riot

Homestead Strike

Progressive Movement

Muckrakers

Upton Sinclair

Jane Addams

Temperance movement

18th amendment

Women's Suffrage Movement

Carrie Chapman Catt

Alice Paul

Theodore Roosevelt

Woodrow Wilson

Federal Reserve Act

16th Amendment

17th Amendment

Essential Questions

What was the Dawes Act? Why did it fail? What impact did the railroads have on the Native Americans? What is a monopoly? What is a trust? What was bimetallism? What problems did the farmer face in the late 1800s? What were the views of a Nativist? What contributed to the rise of unions? Describe the Hull House.

5.1 Western Expansion

After the Civil War, territorial expansion continued at a rapid rate. White settlers claimed

land originally occupied by the Native Americans. Gold and silver drew many people west

in hopes of finding wealth, happiness, and prosperity.

Railroads had a great economic impact and

proved crucial to western expansion.

The railroads allowed farmers and ranchers

to ship their products to eastern cities.

Railroads also contributed to the population

growth.

In 1862, Congress coordinated and effort

among railroad companies to build a

transcontinental railroad.

The Union Pacific and Central Pacific

joined tracks in Promontory, Utah in 1869.

U.S. government often forced Native

Americans to give up their lands, this

negatively impacted Native Americans.

Railroads

The Plains Indians greatly depend on the

buffalo for food, clothing, fuel, and shelter.

As settlers and fur trappers came into the

region, they killed great numbers of buffalo

.

By 1889, only about one thousand buffalo

were left on the continent.

Many Native American tribes were force to

relocate to reservations.

Often the governments forcibly removed

the tribes again each time gold was

discovered or whites needed the land.

Large numbers of Native Americans died

as a result of being forced to travel great

distances.

Impact on Native Americans

THE SAND CREEK MASSACRE

Sometimes Native Americans chose to

resist white settlement rather than accept

being moved off their land.

In 1861, U.S. officials forced the Cheyenne

to give up claims to land they had been

promised by the government.

Cheyenne warriors launched several raids

on mining camps and local settlements.

U.S. forces surprised 500 Cheyenne at

Sand Creek – killing 270 Native Americans

– most of whom were women and children.

Important Battles Between

U.S. Troops and Native Americans

BATTLE OF LITTLE BIGHORN

Under the leadership of chiefs Red Cloud and Crazy

Horse, the Sioux Indians resisted.

In 1876 U.S. commander George Armstrong Custer

attempted to surprise and defeat the Sioux at the

Battle of Little Bighorn.

Custer great underestimated the size of his enemy’s

forces, and rushed into battle.

Sioux warriors quickly surrounded the U.S. troops,

killing Custer and more than 200 of his men.

It would become known as “Custer’s last stand”. It

would also be the last major victory for Native

Americans

Important Battles Between

U.S. Troops and Native Americans

WOUNDED KNEE

The last notable armed conflict between U.S. troops and Native Americans occurred in

1890 at wounded Knee.

It happened after a Sioux holy man developed a religious ritual called the Ghost Dance.

The Sioux believed the dance would bring back the buffalo, return their lands to them and

banish the white man from their land.

Believing the Sioux leader Sitting Bull was using the Ghost Dance to start an uprising, the

government sent in the U.S. army.

When soldiers tried to arrest Sitting Bull, a gunfight broke out and 14 people including

sitting bull was killed.

Soldiers pursued the Sioux to Wounded Creek and started firing, when it was over more

than 150 Native American men, women, and children most unarmed lay dead.

Important Battles Between

U.S. Troops and Native Americans

THE DAWES ACT

In 1887, Congress passed the Dawes Act.

This act abolished tribal organizations and divided up

reservations for the purpose of allotting land to

individual Native American families.

After 25 years ownership of the land would go to the

Native Americans who would become U.S. citizens.

The Dawes Act turned out to be a huge failure. Most

did not want to give up their tribal identity nor be

forced into white culture.

Many had no interest in farming and the land given

to them was not suitable for farming. The N.A.

population decreased due to poverty and disease.

Important Battles Between

U.S. Troops and Native Americans

5.2 The Rise of Big Business

In the years following the Civil War, the U.S.

continued to become and industrialized

society.

A number of inventions helped to contribute

to this trend.

Samuel B. Morse’s - telegraph

Alexander Graham Bell’s - telephone

Thomas Edison's - light bulb

George Westinghouse - first alternating

current

Other key inventions included the typewriter,

vacuum cleaner, refrigerator cars for trains,

elevators, and innovative machinery for

farming - Threshers, mowers, mechanical

planters.

Inventions and Natural Resources

This is the process of producing goods in large

numbers.

Industrialization made mass production possible.

Henry Ford mass produced the Model T. His assemble

line allowed him to produce more cars at less prices.

Industrialization also increased due to natural

resources.

The Appalachian mountains produced rich reserves of

coal and iron ore.

In western Pennsylvania and the southwest, oil was

abundant. In the south, lumber provided a profitable

enterprise due to the need for new housing.

Running water from rivers and streams produced

needed hydroelectricity.

Mass Production

With industrialization came new opportunities and

chances to make money.

THE RAILROAD INDUSTRY

The railroad was the first industry to take off in the

years following the Civil War.

The railroads allowed farmers, ranchers and other

settlers to access eastern markets and resources.

A few men got rich developing the railroad industry,

because some of them were crooked, they became

known as “robber barons”.

This nickname soon became identified with wealthy

businessmen in other industries as well.

One key figure in the railroad industry was Cornelius

Vanderbilt.

Giants of Early U.S. Industrialization

OIL

John D. Rockefeller became on of the nation’s richest

and most powerful businessmen.

Rockefeller’s company, Standard Oil became on of the

nation’s first trust.

Trusts serve to destroy competition and create

monopolies.

Through the trust, Rockefeller was able to dictate

prices, eliminate competition, and control the U.S. oil

industry.

Much of Rockefellers success was due to his use of

vertical integration.

Rather than pay other producers to supply materials,

Rockefeller's company made what it needed.

Giants of Early U.S. Industrialization

STEEL

In the late 1850s, a man named Sir Henry Bessemer

developed a new method of making steel known as the

Bessemer Process.

Using this process, manufacturers could make steel

much cheaper.

Increased production of steel meant faster expansion of

railroads and more buildings.

Steel became very important to the nation’s economy.

Andrew Carnegie came to control this industry. He

also used vertical integration because he also owned

iron, ore, and coal mines as well as railroads and

ships.

Carnegie was also a great philanthropist.

Giants of Early U.S. Industrialization

FINANCE CAPITALISM

The finance capitalist were bankers who exerted

economic influence through companies stocks and

bonds.

J.P. Morgan eventually took control over banks,

insurance companies, and various stock market

operations.

By 1913, Morgan and his associates had assets of over

22 billion.

Morgan was so rich he eventually bought out

Carnegie’s steel company.

He called it U.S. Steel, he paid Carnegie nearly 500

million, making Carnegie the richest man in the world.

Giants of Early U.S. Industrialization

INTERLOCKING DIRECTORATES AND

TARIFFS

It was the era of big business, as industrial

leaders established power through monopolies,

trusts, and interlocking directorates.

As a result of this they could control entire

industries, thereby increasing their economic

gains and limiting competition.

Business leaders also received aid from the

government in the form of protective tariffs.

This taxed foreign imports and made it easier

for U.S. businessmen to sell their products at

higher prices.

Giants of Early U.S. Industrialization

In the mid-1800s, an English philosopher and political theorist named Herbert Spencer

introduced a concept which became known as Social Darwinism.

They believed that life was a battle for “survival of the fittest”.

Many business leaders were drawn to this philosophy.

They believed that the government should not interfere with the market or regulate

business.

They believed that the natural economic laws of supply and demand should dictate

business practices.

People believed that anyone, no matter how poor could pull themselves up by the

bootstraps and become rich.

Not everyone agreed, some felt that while business leaders grew rich, their laborers were

left with harsh working conditions and little pay.

The period from 1877 until the early 1900s came to be called the “Gilded Age”.

Social Darwinism and The Gilded Age

Capitalism fueled industrial growth in the U.S.

Capitalism is an economic system in which means

of production are privately owned.

Producers provide goods and services in response

to market demand.

As a result, producers tend to supply goods and

services that people want and are willing to pay

for.

In a capitalist system, different producers are free

to produce the same goods or services.

This creates market competition.

Market competition leads to lower prices as

producers compete for consumers. The desire to

sell goods for less encourages mass production.

Cultural, Economic, and Political Impact

Industrialization had numerous effects on the U.S. Fro individual citizens, increased

production and new inventions meant that consumer goods were affordable.

The demand for goods increased, as a result people’s standard of living tended to rise in the

second half of the 1800s.

In addition, technological advances like the electric trolley fueled the rise of the middle

class.

U.S. businesses thrived not only at home but in the international markets as well.

As urban populations increased, so did democracy. Poorer citizens, immigrants and other

common people gradually won a greater say in their government.

As the role of urban governments increased, so did their power.

Politicians sought to provide services and favors that would win the support of the people.

Unions, ethnic groups and other organized groups often voted for candidates together.

Cultural, Economic, and Political Impact

Throughout the South and West, farming remained an important part of life.

In the 1870s and 1880s, it became a very costly industry.

Farmers borrowed from banks in order to purchase the latest machinery.

Mechanization helped make farming easier and enabled farmers to produce more goods.

While this initially benefitted farmers, it resulted in overproduction and caused farm prices to

drop.

This meant farmers were getting less money for their products. As farmers slipped further and

further in debt they blamed politicians and big business.

In 1887, President Grover Cleveland signed into law the Interstate Commerce Act which

regulated railroad rates.

Farmers also wanted subsidies. They want government to pay them money to cover their

losses due to its overproduction.

Farmers wanted to see more money put back into the nation’s economy so they supported the

circulation of greenbacks

5.3 Farmers and Populism

To deal with the financial crisis, many

farmers began banding together to

protect their interests.

They stood up to railroads, and other

industries.

Through a cooperative called the

grange, local farmers pooled their

resources to purchase new machinery.

By 1874,, farmers joined over 14

thousand national grange associations.

The Grange

The concern over the famers eventually gave rise to

the Populist Movement.

Populism embraced what farmers wanted, it

supported the circulation of greenbacks.

In 1892,, under the official name of the People’s

Party, the Populists met in Omaha, Nebraska.

Here, they formed the Omaha Platform. Politically,

Populism appealed to the common man.

It was a movement that praised agriculture as the

backbone of the country and favored farmers of the

South and West.

It also sought to break down racial divisions between

white and black farmers. Populists preached these

two groups must unite to beat oppression of big

business and corrupt politicians.

Populism (The People’s Party)

As the country approached the presidential election of 1896, it was experiencing one of the

worse economic depressions ever.

As the depression deepened in 1894, more and more people blamed President Cleveland for

the worsening condition.

Cleveland blamed the silver standard for the nation’s economic woes and returned the U.S.

to a strict gold standard.

This meant the dollar could only be backed by gold. Many people argued it should be based

on silver too. By backing the dollar with gold and silver money would be more plentiful.

The position that supported backing the dollar with silver became known as bimetallism.

Eventually populists agreed to support bimetallism along with greenbacks.

The silver question became the major issue of the 1896 campaign. When the Democrats met

for their convention that year, they nominated a fiery speaker named William Jennings

Bryan.

The Election of 1896

Bryan backed bimetallism and won the

support of the Populists.

In his famous “Cross of gold” speech, he

stated you shall not press down upon the

brow of labor this crown of thorns, you

shall not crucify mankind upon a cross of

gold.

Despite his abilities as a speaker and a

national campaigner. Bryan could not

overcome splits in the Democratic party to

win enough votes. Republican William

McKinley won the presidential election of

1896.

Populism faded soon after.

The Election of 1896

From the end of the civil War until the

beginning of the 20th century, the size of

the U.S. cities increased rapidly.

In the west, new towns grew out of nothing

as railroads and western settlements took

hold.

Many of these towns grew into bustling

cities.

In the east, established cities grew in

population due to industrialization and the

job opportunities it created.

5.4 Urbanization

As industrialization continued in the U.S.

people left their farms and migrated to

cities where they could earn higher wages.

Rising farm cost and declining prices for

agricultural products meant fewer

individuals could make a living farming.

Out West and down South as cities grew

bigger, people began to see an increase in

urban life.

However, it was the Northeastern cities

who saw the greatest numbers of

population growth.

All over people were making their way to

the cities. As for African Americans, most

southern blacks farmed, moved out west or

moved to cities within the South.

Migration to the Cities

The second half of the 19th century also

saw a dramatic increase in immigration to

the U.S.

In the East most new arrivals came from

Europe.

On the West coast, many immigrated from

china in hopes of making money on the

U.S. railway lines.

Some came seeking a better life, others fled

hardships like famine.

By the end of the 1800s, nearly 80% of

New Yorkers were foreign born.

Industrialization was largely responsible, as

industry grew, the need for labor increased.

Immigration

To handle the large numbers of people

arriving in the country, the federal

government opened Ellis Island in 1892.

It was a tiny island near the Statue of

Liberty, which became a well known

reception center for immigrants arriving by

ship.

As more and more people immigrated to

the U.S., the nation became very diverse.

This inspired a phrase called the melting

pot.

Most immigrants did not want to fully

assimilate, they wanted to maintain many

of their traditional ways.

Ellis Island

While immigration had positive effects, such as greater diversity and providing a much

needed labor force.

It also presented problems. Many U.S. citizens looked on immigrants negatively.

They felt immigrants took away jobs from natives. They also mistrusted foreigners whose

cultural ways they could not understand.

People who strongly opposed immigration became known as Nativist.

Nativist were suspicious of ethnic ghettos in inner cities.

Ghettos were neighborhoods where immigrants from a certain region or country tended to

live together due to their common culture, language, and heritage.

Many natives saw this as a sign of disloyalty to the U.S.. Religious difference were also a

source of tension.

Most U.S. citizens were protestants, while many arriving immigrants were catholic.

Problems and Concerns caused by Immigration

As feelings of nativism grew, anti-immigrant

groups grew.

Eventually the government reacted to Nativist

concerns by attempting to pass legislation

restricting immigration.

A number of such efforts failed when they were

vetoed by U.S. presidents .

Legislation did pass with the Chinese Exclusion

Act of 1882.

This prohibited Chinese immigrants from legally

coming to the U.S. and was not repealed until 1943.

Nativism and Restrictions on Immigration

For poor, unskilled citizens and newly arrived

immigrants, urban life could be hard and

challenging.

Whole families tended to work because wages

were so low, meanwhile child labor became a

common practice.

Although industrialization did create some

opportunities for African Americans in the

1800s, they were extremely limited.

It was an age when most workers feared

loosing their jobs when social Security and

unemployment benefits did not exist.

Working conditions were often difficult. Work

was often monotonous and left employees

feeling very little sense of pride.

Living and Working Conditions

Also, work hours were long, wages

were low and factory conditions were

very dangerous.

Sweatshops were also hazardous. These

were makeshift factories and set up by

private contractors.

To house overwhelming numbers of

immigrants, urban slums consisting of

tenements arose in the cities.

Overcrowded and impoverished, these

slums often had open sewers that

attracted rats and other disease

spreading pests.

The air was usually dark and polluted

with soot and they were often occupied

by more than one family.

Living and Working Conditions

As the urban population grew and

transformed, urban life transformed

with it.

Transportation evolved as electric

trolleys allowed people to live outside

the inner city while still working with in

it.

As a result the nation began to see the

first development of its first suburbs.

Increased divisions in economic classes

developed as those of middle and upper

class moved further out.

This left the inner city to the poorer

classes and immigrants.

The New Urban Lifestyle and Entertainment

On the farm, people tended to work by production. They worked until the work was done.

Leisure time was limited and reserved on for special occasions.

Urban factory workers on the other hand worked by the clock. Once work hours ended,

people looked for ways to amuse themselves.

Among men, saloons became popular places to drink, socialize, forge bonds and engage in

politics.

Women enjoyed dance halls, and cabarets where they could watch musical show.

For families there was amusement parks and vaudeville shows. It was during this time that

the moving picture industry was born.

Spectator sports (boxing, horseracing, and especially baseball) became popular.

This was also a time when city parks were being built, the most notable was New York's

Central Park.

The New Urban Lifestyle and Entertainment

Labor Unions rose out of the

challenging conditions that faced

industrial workers.

Unions are organizations of workers

formed to protect the interest of its

members.

The Knights of Labor formed in 1869

and hoped to organize all working men

and women into single unions.

The Knights pursued social reforms

such as equal pay for equal work, the

eight hour workday, and an end to child

labor.

In 1886, the American Federation of

Labor (AFL), led by Samuel Gompers

formed.

5.5 The Rise of Labor Unions

The AFL used the economic pressures of

strikes and boycotts.

The AFL also believed in collective

bargaining.

To increase their ability to negotiate with

business owners, the AFL pressed for closed

shop workplaces in which employers could

only hire union members.

One of the most influential union leaders in

history was Eugene Debs.

He organized the American Railway Union

in 1893 and went on to lead the Pullman

Strike of 1894.

He ran for president several times as a

leader of the American Socialist Party.

5.5 The Rise of Labor Unions

Employers hated unions. Many of them forced

employees to sign contracts, which forbade

workers from even joining.

Others placed union workers on blacklists. Also

they would institute lockouts in which

employees were not allowed to return to work.

When strikes occurred, employers often hired

scabs to take over the jobs left vacated.

As time went on employers would ask for

injunctions. These were court orders that

forbade strikes because they violated the law or

threatened public interests.

When all else failed employers would use

violence and intimidation to deal with labor

problems.

Employer Response to Unions

The first major case of a nationwide labor unrest occurred in 1877.

Upset by wage cuts, railway workers responded with violence.

President Hayes sent in troops on two separate occasions to put down protest, known as the

“Great Strike”.

In May of 1886, workers mounted a national demonstration in support of an 8 hour workday.

During the Chicago Haymarket Square rally, a group of radicals exploded a bomb that killed

or wounded several police officers.

A riot broke out with gunfire that killed both police officers and striking workers. The

Haymarket riot turned public opinion against the unions as many began to identity strikes

with anarchy and violence.

The Homestead Strike broke out among steel workers in 1892 at the Carnegie steel plant.

Strikers and Pinkertons engaged in a shootout that left several people dead or wounded.

In the end the union had no choice but to call off the strike.

Strikes and Confrontations

Like the first of the great strikes, the last involved the railroad industry. In 1894, a delegation

of employees went to George Pullman to protest laying off workers.

Pullman responded by firing three of the labor representatives. This cause the local union to

go on strike.

Pullman then closed the plant rather than negotiate with union leaders.

Led by Eugene Debs, the American railway Union called for a boycott of Pullman cars

nationwide.

By June, roughly 120,000 workers had rallied to the strike.

The federal government responded with an injunction against the union. President Cleveland

sent in federal troops to make sure it was enforced.

Days later the strike was over. The Pullman strike established the precedence for factory

owners appealing to the courts to end strikes.

Strikes and Confrontations

As the 1800s came to a close, only a handful of

people enjoyed wealth and prosperity.

Immigrants and poor laborers continued to live

and work under harsh conditions.

Meanwhile the government was full of

corruption at all levels.

Many citizens and governmental officials

demanded reforms in government, business and

society in general.

The turn of the century marked the beginning

of the Progressive Movement.

This was a time of political, social and

economic change in the U.S.

5.6 Social Reform

A number of leading intellectuals and writers came on the

scene during the progressive period.

Many of these writers wrote stories exposing abuse in

government and big business.

President Theodore Roosevelt labeled these journalists the

“Muckrakers”

Among the Muckrakers were a number of respected writers,

Lincoln Steffens exposed political corruption in St. Louis

and other cities.

Ida Tarbell revealed the abuses of the standard Oil trust.

Perhaps the most famous was Upton Sinclair, who

published a novel called the Jungle in 1906.

It uncovered the truth about U.S. meat packing industry and

led to the creation of the FDA.

The Muckrakers

Jane Addams (nicknamed the “mother of

social work” opened the Hull House as a

settlement house in Chicago.

Settlement houses were houses established in

poor neighborhoods where social activists

would live and from where they would offer

assistance to immigrants and under

privileged citizens.

By 1910, there were more than one hundred

settlement houses in the U.S.

The Hull House also served as a launching

pad for investigations into economic,

political, and social conditions of the city.

Jane Addams

During the Progressive Period, momentum

continued to grow for the temperance

movement.

This was a movement that originally wanted

to limit and eventually advocated eliminating

alcohol.

Ratified in 1919, the 18th amendment

prohibited the making, selling, or

transporting of any alcoholic beverage in the

U.S.

Referred to as Prohibition, this amendment

later proved to be a failure and was repealed.

Temperance

Ever since the Seneca falls Convention of

1848, women had demanded suffrage.

By the 1870s, Susan B. Anthony was the

most recognized leader of this movement.

Along with Elizabeth Cady Stanton and

others, Anthony helped established the

NAWSA which she led until 1900.

Finally in 1920, Congress passed the 19th

amendment and sent it to the states for

ratification. At last, women had the right to

vote.

Women’s Suffrage

In 1901, Theodore Roosevelt became the

youngest man ever to become President.

He proved to be a progressive president who

pursued a number of reforms.

Although Roosevelt was not opposed to big

business, he did believe in some regulations.

He was especially concerned with trusts and

the monopolies they created.

Roosevelt thought monopolies were harmful

and he was determined to take them on.

Roosevelt was praised as a reformer.

Theodore Roosevelt

Woodrow Wilson won the election for president in 1912.

He opposed big business and big government.

In 1913, he supported congress in passing the Federal

reserve Act. This act established a federal reserve to

oversee banking in the U.S.

The federal reserve gave the federal government greater

control over the circulation of money and helped prevent

bank failures.

During Wilson’s first term, he ratified two new

amendments to the constitution.

The 16th Amendment gave Congress the power to collect

taxes on the income of businesses and individuals.

The 17th Amendment established that U.S. senators

would be elected directly by the people.

Woodrow Wilson